Bill Text: DE HB218 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Title 30 Of The Delaware Code Relating To Business Tax Credits And Deductions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-06-29 - Introduced and Assigned to Revenue & Finance Committee in House [HB218 Detail]
Download: Delaware-2011-HB218-Draft.html
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SPONSOR: |
Rep. B. Short |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 218 |
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AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO BUSINESS TAX CREDITS AND DEDUCTIONS. |
Section 1.Amend Chapter 20, Title 30 of the Delaware Code by adding a new "Subchapter X" thereto as follows:
"Subchapter X.
§2090.Short Title.
This subchapter shall be known and may be cited as the ‘Delaware Investment Fund Tax Credit Program'.
§2091.Establishment; Statement of Purpose; Administration.
(a) There is hereby established a Delaware Investment Fund Tax Credit Program the primary purpose of which shall be to assist in the formation and expansion of new businesses which create jobs in this State by providing for the availability of capital and financing to entrepreneurs, managers, inventors and other individuals.
(b) The program shall be jointly administered by the Director of the Delaware Economic Development Office and the Director of the Delaware Division of Revenue, who shall maintain and interpret policy for the program.
§2092.Definitions.
For purposes of this subchapter:
(a) ‘Accredited investor' shall mean any person considered an accredited investor pursuant to Rule 501(a) of Regulation D under Rule 144 of the Securities Act of 1933 (15 U.S.C. 77a., et. seq.).
(b) ‘Certified capital' shall mean an investment made pursuant to §2093 of this subchapter into a Certified Delaware Investment Fund by an accredited investor.
(c) ‘Certified Delaware Investment Fund' shall mean any partnership, limited liability company, corporation, other legal entity, whether organized on a for profit or nonprofit basis, that has as its primary business activity the investment of cash in such manner as to acquire equity in, or provide financing assistance to, business that are in need of capital for expansion, new product development or similar business purposes which has received an investment from the State and which is certified by the Director as meeting the criteria for receiving a tax credit pursuant to this subchapter.
(d) ‘Director' means the Director of the Delaware Economic Development Office;
(e) ‘Person' or ‘Persons' shall include any individual, any form of entity or corporation which is lawful within this State (including limited liability companies and S corporations), any form of partnership which is lawful with this State (including limited liability partnerships) and any trust or estate.
(f) ‘Revenue Director' shall mean the Director of the Division of Revenue.
(g) ‘Secretary' shall mean the Secretary of the Department of Finance.
§2093.Tax Credit.
(a) Subject to the limitations contained in this subchapter and to such return requirements as may be imposed by the Director, Revenue Director or Secretary, an accredited investor who invests certified capital in a Certified Delaware Investment Fund shall be entitled to a credit in the year such investment is made, calculated in accordance with paragraph (b) of this section, against any taxes or fees imposed pursuant to the following statutory provisions:
1. Chapter 11 of Title 5;
2. Sections 702 and 703 of Title 18;
3. Chapters 11, 15 and 19, or any other section of this Title;
(b) The Revenue Director shall calculate a tax credit in the amount of 25% of an accredited investor's cash investment in the certified capital of a Delaware Certified Investment Fund.The credit for investments made by a partnership, limited liability company, S corporation, or any other entity which is treated as a pass-through entity under federal and state income tax laws may be divided pursuant to an election of the entity's partners, members, shareholders or owners.
(c) The amount of the tax credit which exceeds the person's tax liability for any taxable year for which credits are allowed, or the amount of tax credits which are not used by such person for the taxable year in which such credits are allowed, may be carried forward to subsequent tax years until such credits are exhausted; provided, however, that any credit granted pursuant to this section must be used no later than fifteen (15) years after the calendar year in which the tax credit was allocated to the tax payer; and further provided that the reduction in any taxable year shall not exceed such person's tax liability for such year.
(d) The Director, Revenue Director and Secretary shall, by regulation, provide for the transfer or sale of any tax credits provided pursuant to this subchapter.
§2094.Certification of an investment fund.
(a) The Director shall provide by rule or regulation promulgated in accordance with the provisions of Chapter 101 of Title 29 for the procedures for certifying a Delaware Certified Investment Fund.
(b) The Director shall review the articles of incorporation, bylaws, limited liability company agreement, limited partnership agreement or other governing document of each applicant for certification, as a Delaware Certified Investment Fund.The Director shall also review the applicant's business history and determine whether the officers, directors, partners, principals, managers or members are thoroughly acquainted with the requirements of the Delaware Certified Investment Fund Tax Credit Program and the certification and decertification procedures.
(c) Within sixty days of receipt of an application for certification pursuant to this subchapter, the Director shall either issue such certification and notify the Department of Finance, Division of Revenue, State Bank Commissioner and the Insurance Commissioner of said certification or refuse such certification and advise the applicant of the grounds for such refusal, including requirements for the removal of such grounds.
(d) The Director shall have the authority to decertify any Delaware Certified Investment Fund which ceases to meet the requirements of this subchapter.
§2095.Confidentiality of Records.
Notwithstanding any provision of law or regulation to the contrary, the provisions of Chapter 100 of Title 29 shall not apply to the records of a Certified Delaware Investment Fund which are provided to or generated by the Division of Revenue, Department of Finance, State Bank Commissioner, Insurance Commissioner, or the Delaware Economic Development Office.".
SYNOPSIS
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This Act
establishes a tax credit for |
